The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
-Refer to Table 7- 3. If this firm is producing 20 units of output per period its marginal cost is
A) $1.67.
B) $10.00.
C) $1.00.
D) 50 cents.
E) 16.7 cents.
Correct Answer:
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